4 points Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: Direct material birect labor Variable manufacturing overhead Total variable manufacturing cost per case $9.50 3.50 9.00 $22.00 eBook Po 14 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $546,000 per year, and fixed selling and administrative cost is $39,500 per year. The following data pertain to the company's first three years of operation. Planned production (in units) Finished-goode inventory (in units), January 1 Actual production (in units) Year 1 78,000 Year 2 78,000 Year 3 78,000 0 22,000 Beferences 78,000 70,000 70,000 Sales (in units) 78,000 56,000 Finished-goods inventory (in unita), December 31 99,000 22,000 11,000 Actual costs were the same as the budgeted costs. Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing b. Variable costing. 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3A Req 38 Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing, Year 1 Year 2 Year 3 $ 0 $ 05 Selling and Administrative Expenses $ 0 $ 05 A Req 18 > 10 4 points Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cost per case $ 9.50 3.50 9.00 $22.00 P 10 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $546,000 per year, and fixed selling and administrative cost is $39,500 per year. The following data pertain to the company's first three years of operation Year 1 Year 2 Year 3 Planned production (in units) 78,000 70,000 Finished-goods inventory (in unita), January 1 References Actual production (in unita) 78,000 Sales (in unita) 78,000 78,000 56,000 $9,000 78,000 22,000 79,000 Finished-goods inventory (in unita), December 31 22,000 11,000 Actual costs were the same as the budgeted costs Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing. b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand a. What will be the difference between absorption-costing income and variable-costing income in year 47 b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req2 Req 38 Prepare operating income statements for Chataque Can Company for its first three years of operations using variable costing. Variable expenses Year 1 $ Fixed expenses Year 2 Year 3 4 Chataque Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cost per case $9.50 3.50 9.00 $22.00 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $546,000 per year, and fixed selling and administrative cost is $39,500 per year. The following data pertain to the company's first three years of operation. Plassed production (in units) 78.000 Finished-goods inventory (in units), January 1 78,000 78,000 78,000 22,000 78,000 78,000 56,000 99,000 22,000 11,000 Actual production (in unita) Bales (in unita) Pinished-goods inventory (in unite), December 311 Actual costs were the same as the budgeted costs. Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using a. Absorption costing b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. RA Req A Req 38 Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. Year " 2 3 Change in inventory Predetermined fixed overhead rate Difference in fixed overhead expensed under absorption and variable costing 4 Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: 10 poin Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cost per case 01 P $ 9.50 3.50 9.00 $23.00 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $546,000 per year and fixed selling and administrative cost is $39,500 per year. The following data pertain to the company's first three years of operation Planned production (in units) Finished-goods inventory (in units), January 1 Year 2 Year 3 78,000 70,000 022,000 78,000 78,000 56,000 5,000 0 22,000 11,000 Year 1 78,000 78,000 70,000 Finished-goods inventory (in units), December 31 Actual production (in units) Sales in units) Actual costs were the same as the budgeted costs Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using a. Absorption costing b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected. and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 47 b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. R1A Reg 18 Reg 2 Reg 34 Req 38 Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the difference between absorption-costing Income and variable-costing income in year 47 Difference in reported income 4 Chataque Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $35. The variable costs of production for one case of cans are as follows: 10 point Direct labor Direct material Variable manufacturing overhead Total variable manufacturing cost per case $9.50 3.50 9.00 022.00 01 Variable selling and administrative costs amount to $0.90 per case. Budgeted fixed manufacturing overhead is $546,000 per year, and fixed selling and administrative cost is $39.500 per year. The following data pertain to the company's first three years of operation Planned production (in units) Finished-goods inventory (in units), January 1 Actual production (in units) References Sales (in unita) Finished-goods inventory (in units), December 31 Actual costs were the same as the budgeted costs. Required: 78,000 70,000 78,000 0 22,000 70,000 70,000 78,000 56,000 79,000 5,000 22,000 11,000 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using a. Absorption costing b. Variable costing 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 42 b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Complete this question by entering your answers in the tabs below. Reg 21 Reg 3A Reg 30 Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? Tulal operating income wil be higher under variable costing Total operating income will be higher under absorption costing Total operating income wil be same under absorption and variable costing